MICRO-financier, Untu Capital plans to issue medium term notes amounting to $5 million on the Financial Securities Exchange (Finsec).
Finsec is the second securities exchange in Zimbabwe and the first Alternative Trading Platform (ATP).
In a recent pre-listing statement, Untu Capital company secretary Mr Marko Mahuni said: “Under this programme, the issuer may from time to time issue notes denominated in $ or whatever legal currency is in use in Zimbabwe having such period of maturities as may be determined by the issuer and the approved Finsec.”
He said the applicable terms of any tranche of notes would be agreed by the issuer prior to the issue of the notes and will be set out in the terms and conditions incorporated by reference into the notes.
As to adequacy of capital, Mr Mahuni said his organisation was of the opinion that its working capital, including the amounts raised from time to time by the issuer of the notes under the programme, were adequate for them in the foreseeable future. The micro-finance institution posted $2.6 million operating income last year compared to $2.4 in 2015.
Untu also increased its profit by 92.1 percent profit last year to $436.697 compared to $227.313 the previous year. In 2016, the micro-financier total assets improved to $4.5 million from $4.2 in 2015.
Untu is a microfinance enterprise that was established to provide credit to the micro, small and medium scale enterprises (MSMEs) sector.
“Untu strongly believes these loans have a significant developmental impact,” he said.
The microfinance institution, which was licensed by the Reserve Bank of Zimbabwe in 2009, has eight branches, three in Harare and one each in Chitungwiza, Gokwe, Gweru, Bulawayo and Kwekwe.
In recent years, Untu has received several awards from organisations that include the Zimbabwe National Chamber of Commerce for being the best supporter of Small to Medium Enterprises. In 2015, the microfinance company won the Zimbabwe Institute of Management national prize for Best Human Capital Corporate Development Programme.